Miss Otis Collects

Arlene Otis, 30, a graduate student in criminal justice at the University of Illinois, was in the Criminal Courts Building in Chicago last week to interview judges for a term paper when she was suddenly arrested. The charge: illegally collecting $118,456 in welfare benefits.

Otis first applied for benefits legally, under her own name, in 1969. Inspired by success, she later applied four more times, in each instance using a different name and a different address. One of the aliases Otis used was Greta Stewart, the name of an actress who once appeared in the national company of the musical Hair.

The problem was that Stewart died in September 1975, and the Illinois welfare department cut off her benefits the next month. In March 1976, however, Otis appeared before an administrative hearing officer and claimed to be Stewart--alive and in need.

Convinced, the welfare department even paid out $3,000 in back benefits. But investigators became suspicious.

Things don't always move swiftly at the welfare department, though. Only last week did the state's attorney take the case to court, getting a 505-count indictment against Otis for the largest welfare fraud in Illinois history. How did she get away with her scheme for so long? According to investigators, she was successful because she knew welfare law cold and could cite chapter and verse to case workers who questioned her applications.

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